Pepe’s price experienced a rebound on Wednesday following the release of positive US Consumer Price Index (CPI) data. In a high-volume environment, Pepe surged to a high of $0.00014, marking a significant increase of over 23% from its lowest point earlier in the week.
The Bureau of Labor Statistics (BLS) published encouraging inflation data, with the headline Consumer Price Index (CPI) dropping from 0.3% to 0.0%, falling short of the expected 0.1%. On an annualized basis, the CPI declined for the second consecutive month, reaching 3.3% compared to the previous 3.4%. When excluding the volatile food and energy prices, inflation dropped to 0.2% MoM and 3.4% YoY.
These numbers arrived ahead of the Federal Reserve’s interest rate decision. Analysts anticipate that the Fed officials will view the current inflation figures positively and consider reducing rates in the upcoming months. Rate cuts generally act as a positive catalyst, as they make speculative investments, particularly meme coins, more appealing due to the lower cost of borrowing.
Pepe’s price rebound was also supported by a broader uptrend in the cryptocurrency market. Investors who had been patiently waiting on the sidelines found a reason to start buying, leading to the recovery of Pepe’s price. Additionally, other meme coins like Bonk, Dogwifhat, and Book of Meme also experienced a bounce back. However, if the Fed makes a hawkish decision, these tokens could face a sharp reversal.
The momentum behind Pepe’s price recovery can be attributed to a classic case of buying the dip. Notably, the coin had previously declined by approximately 35% from its highest level earlier in the week. This rebound occurred in a high-volume environment, with Pepe’s daily volume surging to over $1.28 billion, up from Tuesday’s $714 million, according to CoinGecko.
Analyzing the daily chart, we can observe that Pepe’s price bounced back after the weak US inflation data. It rebounded after reaching its lowest point this week at $0.00001120, slightly above the crucial support level of $0.00001080, which was its highest swing on March 14th.
Pepe has now surpassed the 23.6% Fibonacci Retracement level, indicating a positive sign. Moreover, it has risen above the 50-day and 25-day moving averages, as well as the first resistance level of the Andrew’s pitchfork tool.
Considering these factors, it is likely that the token will continue to rise as buyers aim for the next psychological level at $0.00015, representing a 10% increase from the current level. If this level is surpassed, Pepe could soar to its year-to-date high of $0.0000172.